The Calmer (ASX:CCO) has executed a non-binding memorandum of understanding with Leilo, a kava-based beverage maker in the US, according to a Wednesday Australian bourse filing.

Under the agreement, the company will supply kava powders, sourced from across the South Pacific, to Leilo, the filing said.

The first phase of supply will start in the fiscal fourth quarter, the filing said.

The company said its wholesale revenue has increased by 49% in the fiscal third quarter, supported by two orders from IMCD and Two Valley.